India’s vibrant festive season long associated with indulgence, gifting, and grandeur is undergoing a meaningful transformation. A new report by early-stage venture capital firm Rukam Capital, titled “Aspirations of New India: How Consumers Select, Shop, and Shape Brand Connections”, reveals that 61% of Tier-I shoppers are turning to homegrown brands, marking a pivotal shift in how Indians celebrate, consume, and connect with brands.
Conducted in collaboration with YouGov, the study draws insights from over 5,000 respondents across 18 states, spotlighting a growing alignment between consumer values and brand choices. The findings show that India’s festive economy is now being powered by mindfulness, identity, and purpose rather than just impulse or tradition. This change comes as the country’s festive retail economy is expected to grow by 23%, reaching an estimated USD 125–150 billion in 2025. Supported by GST 2.0 reforms, the festive boom is no longer confined to metros but is rapidly expanding across smaller towns broadening the opportunity for both established brands and new-age startups.
Commenting on the report, Archana Jahagirdar, Founder and Managing Partner, Rukam Capital, said, “The Indian consumer is no longer a passive participant in shaping market trends. The landscape is now driven by affordability, aspiration, and digital sophistication. Loyalty today is built not on discounts, but on meaning how a brand makes people feel understood, connected, and valued.”
Key Festive Shifts Driving New India
1. Rise of the Homegrown
Local pride is defining festive choices. Over half of Indian consumers now prefer homegrown or small business brands, drawn to their authenticity and community appeal. In Tier-I cities, 61% actively choose Indian brands, while 59% align their spending with social or environmental causes. Interestingly, 43% of respondents say they enjoy shopping from emerging startups during the festive period reflecting the rise of conscious capitalism.
2. Wellness Meets Celebration
This festive season, indulgence is being redefined by health and balance. Over 53% of Millennials and 47% of Gen Z plan to buy healthy snacks, while 73% prefer sugar-free or substitute-based sweets. Nearly one in three consumers now seeks products that blend heritage with health, reinforcing India’s evolving definition of wellness.
3. Digital Dominance Through UPI
India’s digital revolution continues to reshape consumption. Two in five shoppers now prefer UPI as their payment method, with Tier-III cities showing the highest usage (42%). Meanwhile, Tier-I consumers balance UPI (36%) with credit cards (24%) to maximize convenience and cashback benefits.
About Rukam Capital
Rukam Capital is an India-based early-stage venture capital firm investing in consumer products and services companies that create lasting impact. Founded by Archana Jahagirdar, Rukam Capital backs purpose-led founders solving real-world challenges with innovation, empathy, and scale. The firm partners closely with entrepreneurs to build brands people love bridging capital, strategy, and long-term growth.
As India’s festive economy transforms, the findings from this study serve as a reminder that the future of consumption lies in authenticity, wellness, and digital empowerment and brands that embody these values will define the next chapter of India’s growth story.
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